An Open Letter to ETN Providers
The creation of new exchange-traded products doesn't cease. If there's demand and a dollar to be made, why not provide a vehicle to meet that demand? If there's a void to fill, why not fill it? No sector goes forgotten, nor any country unnoticed. I just hope when I reach the age to draw a social security check, there is an ETF or ETN that hedges the income, or even the existence, of such checks. If we can buy it, sell it, make it, mine it, harvest it, print it, poke it or prod it, there is a way to trade it. ETNs are embraced by traders, and they're a useful tool for many investors. Even products containing inherent flaws can be used by those who take the time to understand them. And when the products are deemed useless by the market, they cease to exist -- except when they don't.
Many ETFs and ETNs survive far beyond their "Best Used By" dates -- it is often the same as a trader who refuses to take a loss. Other times, the security is somehow still profitable or not enough of a bother to close. Although, as long as it still tracks the index, commodity, currency or country it was created to track, I can just shrug my shoulders and move on....664 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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